7 Important Things You Should Know About Auto Insurance
With millions of cars being driven every day in Toronto and the GTA, auto insurance is a legal requirement and is essential for protecting yourself and passengers in your car. Think about your daily driving route and your passengers.
If you have kids and do the school run, or you need to drive to work, suitable auto insurance acts as a security blanket in case you get involved in a car accident. Along with city driving, if you’re a business owner or contractor who needs to drive long distances to various areas in Ontario, finding affordable insurance is important for your vehicles.
If you’re planning to own multiple cars and use them for different purposes, it’s recommended to consult with an auto insurance broker in Toronto to get the most affordable auto insurance that fits your budget and lifestyle.
With hundreds of car insurance companies to choose from, we’d like to help you understand seven of the most important things you should know before you purchase auto insurance.
1. Collect Your Car Information and Driving History
Auto insurance companies in Toronto and the GTA automatically request specific information about you and the other members of your family you want to add to car insurance coverage. Here is the general information you need to have when you start contacting auto insurance brokers in Ontario for quotes.
- Order an official copy of your driving record or abstract from Service Ontario, along with the other driving records of the people you would like to add to your auto insurance policy.
- Write down the serial number (aka VIN) to allow the broker to properly identify the model, make, and year of the type of vehicle(s) you drive.
- If your car is used, you should know exactly how old it is and the total value of the car.
- If your vehicles have anti-theft devices installed, know the name and model of the anti-theft car company.
- Note down the estimation of kilometres you drive per year for each car as well as the kilometers for a one-way trip to work or school.
2. Shop Around for Auto Insurance Coverage That Suits Your Budget
Before purchasing auto insurance, shop around and see what different car insurance companies offer. You can ask them for an accurate assessment of the insurance coverage you need but first, you will have to give them answers to the following questions:
- How long have you held a valid driver’s license?
- Do you own a house? How long have you owned your house?
- Are you a small business owner?
- What is your net worth?
3. Compare Different Quotes From Car Insurance Companies
Choosing the right auto insurance means comparing different quotes from a range of car insurance companies. So be sure to ask the auto insurance broker if the quote they gave you is the lowest price.
Try not to sign with one auto insurance company until you finish reviewing multiple quotes from at least three to four insurance companies because different companies may include different limits to their coverage. Make sure the coverages on the quotes you are comparing are similar.
4. Ask About Accident Forgiveness
Along with comparing multiple quotes, it’s a good idea to ask each car insurance company in Ontario about their accident forgiveness policy. Accident forgiveness means that if you get into your first car accident, your car insurance company agrees not to raise your auto insurance premium rates after the at-fault accident. Before you commit to an auto insurance policy, it’s a good idea to add accident forgiveness to your policy.
However, it’s important to note that the majority of car insurers in Ontario and Canada charge higher premiums for accident forgiveness and their terms and conditions might be right for your situation.
5. Rental Cars and Your Own Car Insurance
When you rent a car for travelling or business purposes, you might assume that the insurance on your credit card gives you coverage in case you get involved in a car accident. Unfortunately, credit cards do not cover third-party liability or damages on rental cars.
You should also review the car rental’s collision damage waiver when you rent a car because they might not cover the full cost of damages if you were to get into a car accident with the rental car.
The best solution is to ask your car insurer to add a coverage extension that covers accidental coverage on rental cars..
6. Review Policy Documents
Before committing to an auto insurance policy, ensure it states the correct amount of liability coverage for car damage and bodily injury. It’s essential to understand that it is a legal binding contract and you need to be clear on exactly what you are paying for and what your policy covers.
Also review the cancellation policy. Every car insurance policy has different stipulations when it comes to cancelling your policy because they could cancel your coverage if you have multiple speeding tickets or multiple accidents. On the other hand, you might have to cancel your insurance with them due to unforeseen circumstances and you should be aware of any penalty fees, if applicable. It’s important to review your car insurance policy documents and go through each stipulation with your auto insurance broker before you sign on the dotted line.
7. Set Up Recurring Payments
Once you sign your car insurance policy contract, ask your insurer if you could arrange a payment plan. Your auto insurance broker will guide you on how to set up monthly recurring payments from your banking institution.
Auto Insurance: Contact Goodison Today
To learn more about our auto insurance coverage and the options available to you, call Goodison Insurance toll-free at 1-800-403-7703 or contact us here. Our team of experts are here to help you with your auto insurance needs.